Shares of K Car Co., Ltd. (KOSE:A381970) rallied as much as 16%, December 16, 2022, on reports that Hahn & Company decided to sell its controlling stake in the used car retailer. The nation's second-largest private equity firm holds a 72% stake in K Car. The latter's market capitalization is around KRW 617.9 billion ($471.8 million) as of the closing price on Dec.

15. Other details including the sales price have yet to be confirmed, but the market estimates the firm's valuation will reach more than KRW 500 billion. K Card also confirmed the report in a regulatory filing.

"The largest shareholder has picked Goldman Sachs as an advisor to discuss sales of K Car's stake and other diverse strategic options, but no concrete decisions have been made as of now," K Car said in a statement. Nonetheless, it remains to be seen whether Hahn and Co. will be able to sell K Card at its proper valuation amid the current financial circumstances, which have frozen due to rate hikes and soaring exchange rates.

The local mergers and acquisitions market has also remained dull in line with other asset markets.